How to Manage Crowdsourcing Platforms Effectively? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of How to Manage Crowdsourcing Platforms Effectively?
To profit from crowdsourcing, organizations can engage in four different approaches: microtasking, information pooling, broadcast search, and open collaboration. This article presents 21 governance mechanisms that can help organizations manage their crowdsourcing platforms. It investigates the effectiveness of these governance mechanisms in 19 case studies and recommends specific configurations of these mechanisms for each of the four crowdsourcing approaches. Also, it offers guidance to organizations that host a crowdsourcing platform by providing recommendations for implementing governance mechanisms into their platforms and building up governance capabilities for crowdsourcing.
Authors :: Ivo Blohm, Shkodran Zogaj, Ulrich Bretschneider, Jan Marco Leimeister
Swot Analysis of "How to Manage Crowdsourcing Platforms Effectively?" written by Ivo Blohm, Shkodran Zogaj, Ulrich Bretschneider, Jan Marco Leimeister includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crowdsourcing Mechanisms facing as an external strategic factors. Some of the topics covered in How to Manage Crowdsourcing Platforms Effectively? case study are - Strategic Management Strategies, Collaboration, Corporate governance, Innovation, Internet, IT and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the How to Manage Crowdsourcing Platforms Effectively? casestudy better are - – increasing household debt because of falling income levels, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, technology disruption, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of How to Manage Crowdsourcing Platforms Effectively?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How to Manage Crowdsourcing Platforms Effectively? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crowdsourcing Mechanisms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crowdsourcing Mechanisms operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of How to Manage Crowdsourcing Platforms Effectively? can be done for the following purposes –
1. Strategic planning using facts provided in How to Manage Crowdsourcing Platforms Effectively? case study
2. Improving business portfolio management of Crowdsourcing Mechanisms
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Crowdsourcing Mechanisms
Strengths How to Manage Crowdsourcing Platforms Effectively? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crowdsourcing Mechanisms in How to Manage Crowdsourcing Platforms Effectively? Harvard Business Review case study are -
Ability to recruit top talent
– Crowdsourcing Mechanisms is one of the leading recruiters in the industry. Managers in the How to Manage Crowdsourcing Platforms Effectively? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the How to Manage Crowdsourcing Platforms Effectively? Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Innovation & Entrepreneurship field
– Crowdsourcing Mechanisms is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Crowdsourcing Mechanisms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Crowdsourcing Mechanisms is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Ivo Blohm, Shkodran Zogaj, Ulrich Bretschneider, Jan Marco Leimeister can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Crowdsourcing Mechanisms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Crowdsourcing Mechanisms has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study How to Manage Crowdsourcing Platforms Effectively? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Crowdsourcing Mechanisms digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crowdsourcing Mechanisms has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Crowdsourcing Mechanisms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Crowdsourcing Mechanisms has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Crowdsourcing Mechanisms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Crowdsourcing Mechanisms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Crowdsourcing Mechanisms is present in almost all the verticals within the industry. This has provided firm in How to Manage Crowdsourcing Platforms Effectively? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– Crowdsourcing Mechanisms is one of the most innovative firm in sector. Manager in How to Manage Crowdsourcing Platforms Effectively? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Crowdsourcing Mechanisms in the sector have low bargaining power. How to Manage Crowdsourcing Platforms Effectively? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Crowdsourcing Mechanisms to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses How to Manage Crowdsourcing Platforms Effectively? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How to Manage Crowdsourcing Platforms Effectively? are -
Slow to strategic competitive environment developments
– As How to Manage Crowdsourcing Platforms Effectively? HBR case study mentions - Crowdsourcing Mechanisms takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Crowdsourcing Mechanisms is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study How to Manage Crowdsourcing Platforms Effectively? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Crowdsourcing Mechanisms supply chain. Even after few cautionary changes mentioned in the HBR case study - How to Manage Crowdsourcing Platforms Effectively?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Crowdsourcing Mechanisms vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study How to Manage Crowdsourcing Platforms Effectively?, is just above the industry average. Crowdsourcing Mechanisms needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Capital Spending Reduction
– Even during the low interest decade, Crowdsourcing Mechanisms has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Crowdsourcing Mechanisms products
– To increase the profitability and margins on the products, Crowdsourcing Mechanisms needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Ivo Blohm, Shkodran Zogaj, Ulrich Bretschneider, Jan Marco Leimeister suggests that, Crowdsourcing Mechanisms is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Crowdsourcing Mechanisms has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Crowdsourcing Mechanisms is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Crowdsourcing Mechanisms needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Crowdsourcing Mechanisms to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Crowdsourcing Mechanisms has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Low market penetration in new markets
– Outside its home market of Crowdsourcing Mechanisms, firm in the HBR case study How to Manage Crowdsourcing Platforms Effectively? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities How to Manage Crowdsourcing Platforms Effectively? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study How to Manage Crowdsourcing Platforms Effectively? are -
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Crowdsourcing Mechanisms in the consumer business. Now Crowdsourcing Mechanisms can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Crowdsourcing Mechanisms has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Crowdsourcing Mechanisms can use these opportunities to build new business models that can help the communities that Crowdsourcing Mechanisms operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Crowdsourcing Mechanisms is facing challenges because of the dominance of functional experts in the organization. How to Manage Crowdsourcing Platforms Effectively? case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Crowdsourcing Mechanisms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. How to Manage Crowdsourcing Platforms Effectively? suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Crowdsourcing Mechanisms can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Crowdsourcing Mechanisms can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Crowdsourcing Mechanisms has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study How to Manage Crowdsourcing Platforms Effectively? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Crowdsourcing Mechanisms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Crowdsourcing Mechanisms to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Crowdsourcing Mechanisms to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Crowdsourcing Mechanisms can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Crowdsourcing Mechanisms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Crowdsourcing Mechanisms can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Crowdsourcing Mechanisms to increase its market reach. Crowdsourcing Mechanisms will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Crowdsourcing Mechanisms can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, How to Manage Crowdsourcing Platforms Effectively?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats How to Manage Crowdsourcing Platforms Effectively? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How to Manage Crowdsourcing Platforms Effectively? are -
Technology acceleration in Forth Industrial Revolution
– Crowdsourcing Mechanisms has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Crowdsourcing Mechanisms needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Crowdsourcing Mechanisms needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Crowdsourcing Mechanisms can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
High dependence on third party suppliers
– Crowdsourcing Mechanisms high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Crowdsourcing Mechanisms demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Crowdsourcing Mechanisms business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crowdsourcing Mechanisms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Crowdsourcing Mechanisms needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study How to Manage Crowdsourcing Platforms Effectively?, Crowdsourcing Mechanisms may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Crowdsourcing Mechanisms needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.
Stagnating economy with rate increase
– Crowdsourcing Mechanisms can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Crowdsourcing Mechanisms
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Crowdsourcing Mechanisms.
Weighted SWOT Analysis of How to Manage Crowdsourcing Platforms Effectively? Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study How to Manage Crowdsourcing Platforms Effectively? needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study How to Manage Crowdsourcing Platforms Effectively? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study How to Manage Crowdsourcing Platforms Effectively? is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of How to Manage Crowdsourcing Platforms Effectively? is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Crowdsourcing Mechanisms needs to make to build a sustainable competitive advantage.
